PANews reported on December 21 that CryptoQuant founder Ki Young Ju tweeted that Bitcoin strategic reserves are a viable way to offset US debt. Over the past 15 years, $790 billion in real capital inflows have pushed Bitcoin's market value to $2 trillion. This year alone, $352 billion in inflows have increased its market value by $1 trillion.
However, using an extractable asset like Bitcoin (rather than gold or USD) to offset USD-denominated debt may make it challenging to gain consensus among creditors. In order for Bitcoin to gain broader market acceptance, it must gain global, national authority comparable to that of gold. Establishing a Strategic Bitcoin Reserve (SBR) could serve as a symbolic first step.
Since 70% of the U.S. debt is held domestically, if the U.S. government designated Bitcoin as a strategic asset, it would be feasible to offset 36% of that debt by purchasing 1 million Bitcoins by 2050. While the remaining 30% of the debt held by foreign entities might resist this approach, the plan does not rely on paying off all debt with Bitcoin, making the strategy feasible.
